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GOP struggles to find backup plan for avoiding debt default | TheHill


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The New York Times
SOURCE: http://thehill.com/policy/finance/452896-gop-struggles-to-find-backup-plan-for-avoiding-debt-default
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Summary

But while Congress has until January to avoid deep budget cuts, it appears increasingly likely it will have to vote to raise the debt ceiling before leaving for the August recess.Underscoring the urgency, Treasury Secretary Steven MnuchinSteven Terner MnuchinPelosi calls for spending parity in budget agreement On The Money: Mnuchin warns US could hit debt limit in early September | Acosta out as Labor chief | Trump pitches trade deal in Wisconsin | FTC reportedly settles with Facebook for B fine Mnuchin warns US could hit debt ceiling in early September MORE sent letters to congressional leadership Friday requesting Congress vote before the recess, after first indicating to reporters that it was his “preference” lawmakers act this month.Sen. John ThuneJohn Randolph ThuneGOP frets over nightmare scenario for Senate primaries High anxiety hits Senate over raising debt ceiling McConnell: Acosta's future is up to Trump MORE (R-S.D.), when asked how Congress could raise the debt ceiling without a deal on spending caps to avoid the budget cuts, said it was a “good question.”“Did he have a suggestion about that?” the No. 2 Senate Republican asked, referring to Mnuchin, who has been sounding the alarm about the need for an expedited vote.Sen. John CornynJohn CornynTrump nominees meet fiercest opposition from Warren, Sanders, Gillibrand On The Money: Mnuchin warns US could hit debt limit in early September | Acosta out as Labor chief | Trump pitches trade deal in Wisconsin | FTC reportedly settles with Facebook for B fine GOP balks at White House push for standalone vote on debt ceiling MORE (R-Texas), an adviser to Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellRepublicans make U-turn on health care Trump nominees meet fiercest opposition from Warren, Sanders, Gillibrand Racial politics roil Democratic Party MORE (R-Ky.), said it would be “very hard.”Sen. Shelley Moore CapitoShelley Wellons Moore CapitoRepublicans make U-turn on health care High anxiety hits Senate over raising debt ceiling On The Money: Labor secretary under fire over Epstein plea deal | Trump defends Acosta as Dems call for ouster | Biden releases tax returns showing steep rise in income | Tech giants to testify at House antitrust hearing MORE (R-W.Va.), a member of leadership and the Senate Appropriations Committee, laughed when asked if she knew what the party’s alternate plan is for the debt ceiling.“No, I don’t know what the backup plan is,” she said. The House is set to leave town on July 26; the Senate is scheduled to be in session through Aug. 2.Senate Appropriations Committee Chairman Richard ShelbyRichard Craig ShelbyGOP balks at White House push for standalone vote on debt ceiling Lawmakers concede they might have to pass a dreaded 'CR' On The Money: Fed chief warns of 'unthinkable' harm if debt ceiling breached | Powell basks in bipartisan praise amid Trump attacks | Federal deficit jumps to 7 billion MORE (R-Ala.), asked how to raise the debt ceiling without a budget deal, demurred on the tactics but argued it was imperative that Congress act.“That would be up to the leadership … but I think raising the debt limit is imperative unless you want to see chaos through the world financial market,” he said.He predicted that lawmakers wouldn’t make a decision on strategy until the eleventh hour, saying that “urgency makes people active.”“Generally, the Congress doesn’t do anything … until it’s the deadline or on the brink of either success or disaster,” Shelby added.Members are hoping they’ll be able to come up with and vote on a larger agreement before the recess to raise the statutory defense and nondefense spending caps, which would allow them to stick with their original plan of wrapping the debt ceiling and eventual budget deal into one vote.In a potential sign of progress, Mnuchin met with GOP leadership last week and talked to House Speaker Nancy PelosiNancy PelosiDurbin responds to Trump tweet: 'Thank goodness' Omar made it to United States Sanders: Pelosi is being 'a little bit' too tough on Ocasio-Cortez Pelosi: Trump's attack on Democratic lawmakers reaffirms his plan to make 'America white again' MORE (D-Calif.) on Tuesday, twice on Thursday and again on Friday and Saturday to try to negotiate a deal.

As said here by Jordain Carney